Motorists looking to go green are being offered a £1,500 boost under a government scheme to slash the cost of electric vehicles.
The first four electric cars approved for the discount under a new taxpayer-funded drive to accelerate the switch to EVs are all from French carmaker Citroën.
The models – the e-C3, e–C4, e-C5 Aircross and the e-Berlingo – will be sold with the grant automatically applied from this week, meaning no paperwork is needed by customers to claim the saving.
The £650million Electric Car Grant (ECG) is part of a wider £4.5billion government strategy to cut emissions, reduce motoring costs and boost UK industry. It is also designed to help carmakers offset global economic pressures by pushing sales of electric vehicles.
Transport Secretary Heidi Alexander said: “With the first four models approved today and more to come over the next few weeks, this summer we’re making owning an electric car cheaper, easier and a reality for thousands more people across the UK.
“Once again we’re delivering our Plan for Change by standing firmly on the side of motorists and manufacturers, driving down costs for consumers, supporting jobs and putting money back in people’s pockets.”
The move comes as ministers attempt to revive interest in battery-powered vehicles following a recent slowdown in demand, largely blamed on high upfront costs and patchy charging infrastructure.
Under the scheme, EVs priced under £37,500 that use Chinese-made batteries will qualify for a £1,500 grant, while models without Chinese batteries will be eligible for a larger £3,750 discount. Additional qualifying vehicles are expected to be announced in the coming weeks.
Citroën UK managing director Greg Taylor welcomed the move, saying: “We are delighted to be the first to have our electric range… approved and eligible.
“At Citroën we want everyone to have the opportunity to make the switch to an electric car and this support will help make our cars more accessible for our customers.”
The RAC also backed the policy, saying it would ease the cost barrier for drivers looking to go electric.
Simon Williams, RAC head of policy, said: “It’s great to see the first qualifying models announced for the government’s new Electric Car Grant.
“Not only does this mean more drivers will benefit from the lower cost of running an electric vehicle, but it’s hopefully the sign of more to come from other manufacturers in the weeks ahead.”
Figures suggest the savings could go far beyond the showroom price. Drivers who switch from petrol or diesel to electric can save up to £1,500 a year in fuel and running costs.
To support the rollout, more than 17,300 new public chargepoints have been added since last summer – a 27% increase – taking the UK total to more than 82,000. The government claims a new charger is being installed every half an hour.
A separate £63million programme has also been launched to help people charge electric cars at home, even without a driveway, enabling EVs to run at as little as 2p a mile – the equivalent of driving from London to Birmingham for just £2.50.
The Electric Car Grant follows a string of motoring pledges aimed at easing the cost of driving, including £1.6billion to fix potholes and a continued freeze on fuel duty until spring 2026 – a move said to save drivers an average of £59 a year.
The ECG forms part of a wider push to ensure Britain leads the electric revolution. The UK was the largest EV market in Europe in 2024, with sales up 20 per cent on the previous year.
The support is also tied to the Zero Emission Vehicle (ZEV) Mandate, which requires manufacturers to steadily increase their EV sales. Ministers say recent updates to the rules will give industry “the certainty, stability and support they’ve been asking for”.
The grants will run until 2028-29, with further models set to qualify in the coming days as manufacturers submit their vehicles for approval.